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The Government has said zero-hours contracts will not be banned despite admitting that "there has been evidence of abuse".

"While for many people they offer a welcome flexibility, for others it is clear that there has been evidence of abuse around this type of employment, which can offer limited employment rights and job security", a Business Department spokesman said.

Ed Miliband will today promise new rights for workers to stop the 'worst abuses' of zero-hours contracts. Credit: Press Association Images/CHRIS YOUNG

He added that the Government was still analysing the results of a consultation following research carried out last year into the key concerns and would publish a response in due course.

Labour leader Ed MIliband is set to promise new rights for workers to stop the "worst abuses" of zero-hours contracts later today.

Leisure group Whitbread has vowed to step up expansion of its Premier Inn and Costa chains in a move set to create 12,000 jobs over the next five years.

Whitbread own coffee shop chain Costa. Credit: PA

The latest pledge came as it reported an 11% rise in underlying profits to £356.5 million for the year to February 28.

Having created 3,000 UK jobs over the financial year, it announced new targets which will see it grow Premier Inn by 45% to around 75,000 rooms and double coffee chain Costa's sales to around £2 billion.

The hotel and restaurant group also own Beefeater and Brewers Fayre restaurants.

The chief executive of EEF, the manufacturers' organisation, said the Budget statement "still feels like a job half done" despite containing "some helpful measures on business taxation and some signs of re-prioritising spending for growth".

"The Chancellor had over £11 billion of under-spending in his arsenal and should have done more to drive growth now, particularly through accelerating investment in infrastructure", Terry Scuoler said.

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Airline groups say they are disappointed that the Chancellor put "beer before aviation" by making no changes to the air passenger duty airport departure tax. It's due to rise again next month.

. Credit: PA Wire

Dale Keller, Chief Executive of airline group BAR UK, said: "Just because the industry was fully expecting a slap in the face from the Treasury does not make it any more palatable. It's beyond belief that the Chancellor has put beer before aviation."

We applaud this budget. The Chancellor has stuck to his guns and held his nerve - which is exactly what we wanted to see. Deficit reduction is not an optional policy, it is an absolute necessity, and he is right to reject the siren calls to abandon it.

Businesses will be glad that George Osborne has also continued the downward pressure on Corporation Tax. Britain must become the most competitive place to do business, and lower taxes will attract welcome investment from abroad.